# Question: Per capita state expenditures are related to the per capita

Per capita state expenditures are related to the per capita number of prisoners in a state: Yi = a + Bprisonersi + ui

A: Given (X, Y) = (500, 4), (300, 4), (700, 5), (600, 7), graph the points

B: Calculate the slope and intercept.

C: Interpret these results.

D: Compute fitted values for each observation, and calculate the residuals.

E Sum the residuals. What should the sum be, and why?

F: Calculate the residual sum of squares, total sum of squares and explained sum of squares.

G: How much of the variation in state expenditures is explained by this model?

H: If you were to divide your X variable by 100 in order to make the scale between X and Y more similar, how would your results change?

Discuss the implications for slope (value and significance), intercept, and R squared.

A: Given (X, Y) = (500, 4), (300, 4), (700, 5), (600, 7), graph the points

B: Calculate the slope and intercept.

C: Interpret these results.

D: Compute fitted values for each observation, and calculate the residuals.

E Sum the residuals. What should the sum be, and why?

F: Calculate the residual sum of squares, total sum of squares and explained sum of squares.

G: How much of the variation in state expenditures is explained by this model?

H: If you were to divide your X variable by 100 in order to make the scale between X and Y more similar, how would your results change?

Discuss the implications for slope (value and significance), intercept, and R squared.

**View Solution:**## Answer to relevant Questions

What costs is a firm trying to balance when it decides on how much safety stock to hold?Simone uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following:Under-applied manufacturing overhead: ...Ace and Baumont Corporations make and sell electrical equipment. Both have to decide whether or not to discount. The payoff matrix of “Discount” and “Not to Discount” expressed in terms of profit (+) or loss (-) for ...The Sales and Advertising Data (2009)Kramer Smith CaseKramer Smith owns a dry-cleaning service and is thinking about changing his advertising expenditures for the year. He hires you as a consultant to determine the ...Ben purchased 100 shares of stock from the Frankfurt (Germany) Stock Exchange at a price of €50 per share when the exchange rate was €1 = $1.30. He sold the shares less than a year later at a price of €58 per share ...Post your question